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Brokerbility in equity deal

Leicester-based broker alliance Brokerbility is to overhaul its ownership structure to give its affiliates a stake in the company, Insurance Times has learned.

Brokerbility will offer members an equity shareholding in the business in exchange for it taking a shareholding in the broker.

The alliance plans to increase gradually its shareholding in each of its member companies as it grows.

Brokerbility recently completed a total acquisition of Nottingham-based Hawthorne Parks, and plans to increase shareholdings in other members as it matures.

"Through various routes we have developed a concept whereby everyone who is in Brokerbility will have shares in the business, and we will own shares in our member brokers," Stuart Randall, Brokerbility managing director told Insurance Times.

"Each broker has a different percentage holding in the group - and vice versa."

The move comes as Brokerbility announced that Yorkshire-based ProAktive Risk Group had joined the alliance, taking the group's annual gross written premium (GWP) to £140m.

The ProAktive Risk group is its largest affiliate member since Brokerbility's launch in January this year.

It adds a further three offices to Brokerbility's current bases, and establishes a presence in the North West.

"We feel that the ProAktive Group is a key broker base in the Yorkshire region, and will give us a strong regional base," said Randall. "We are about growing at a profitable rate rather than expanding our bases too rapidly."

Randall said within the next month he aimed to have grown the group to £200m GWP.